Maxis Shares Up At Early Trade Following RM83 Mln Broadband Business Asset Acquisition

KUALA LUMPUR, Oct 26 (Bernama) -- Maxis Bhd’s shares rose at early trade today following the group’s proposed acquisition of  Astro Malaysia Holdings Bhd’s wholly owned subsidiary MEASAT Broadcast Network Systems Sdn Bhd’s (MBNS) broadband business assets for RM83 million.

At 9.55 am, the company’s shares rose five sen to RM3.59 with a total of 155,600 shares traded.

RHB Investment Bank Bhd view the proposed acquisition positively as it is expected to further strengthen Maxis’ share of the fixed broadband (FBB) market on the back of stiff competition.

“The acquisition would bump up FBB subscription base by 24 per cent and Maxis’ home revenue by 22 per cent,” it said in a note today.

Therefore, the investment bank maintained a ‘neutral’ call on Maxis with a target price of RM3.80 per share.

-- BERNAMA